Titus Tronix Is Currently Having a Consumer Electronics Clearance Sale

Essay

Titus Tronix is currently having a consumer electronics clearance sale.The store presently has 10 Gadzooks video cassette recorders on sale.Five are Standard, three are Economy, and two areTop-of-Line.Each day the firm expects between 0 and 3 customers
interested in buying a VCR to arrive at the store according to the
following probability distribution:
P(0 arrivals) = .15
P(1 arrivals) = .40
P(2 arrivals) = .25
P(3 arrivals) = .20
For each customer interested in buying a VCR, there is a seventy
percent chance that the customer will want to purchase one of the
sale-priced Gadzooks models.Titus knows from past experience that
sixty percent will want a Standard, twenty-five percent will want
the Economy, and fifteen percent will desire the Top-of-Line.If
the store is sold out of a particular price-level model, the
customer who wanted it will leave the store without buying any
other.
Set up a model which will simulate five days of VCR sales at Titus.
Use any set of random numbers, but clearly indicate how they were
selected.What is your estimate of Titus' remaining inventory of the
three Gadzooks models, at the end of five days?